The impact of human resource capabilities on internal customer satisfaction and organisational effectiveness

Abstract

This study examined the impact of human resource (HR) capabilities on internal customer satisfaction and organisational effectiveness. It drew on data from HR managers and line managers; a total of 238 valid matches was obtained. Structural equation modelling was employed to examine the proposed model. The results showed that some HR capabilities appear to be linked to internal customer satisfaction and organisational effectiveness. The implications for practitioners were to modify and emphasise certain HR practices, and to emphasise the role of internal customers for organisational effectiveness enhancement. These findings revealed the importance of internal customers in enhancing employee morale, organisational commitment, employee productivity, turnover rate and the organisation's ability to attract talent.

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